Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Mike Ramer

Mike Ramer, CPC, CSP, is an international trainer for the search and recruitment industry. He is founder and president of Ramer Search Consultants in the New York metro area. Mike designed The Art of Search© training programs, which he presents at industry events, conferences, and recruiting firms worldwide. Mike's training has been hailed as "unlike any other," "national best of the best," and "Mike's passion, knowledge, and creativeness separate him from the rest." Each of his programs is customized for today's market to maximize your income. His training is interactive, motivational, and packed with innovative techniques you won't hear anywhere else. Mike is also an Executive Career Coach and Expert Witness for employment matters. He has been quoted and interviewed by national media, including The Wall Street Journal, Smart Money, Forbes.com, Reuters.com, and NPR. For more about Mike's training, please visit his firm's website at www.RamerGroup.com or email training@ramergroup.com.

Articles by Mike Ramer

Business

Time To Celebrate and Plan

by on Dec. 15, 2010


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This is my favorite time of year. The holiday season with snowbells jingling, family gatherings, and festive parties. And, the New Year with its promise of a fresh start and new things to come.

It’s a time to be thankful and to celebrate:

  • Celebrating: Business is on the upswing. We’re leaner. We’re smarter. We’re growing again.
  • Appreciating: We made it through a very tough economy. We’ve earned it.
  • Reflecting: Reviewing last year’s goals and checking off accomplishments.
  • Anticipating: Writing goals and planning for the new year.
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The New World of Social Media Recruiting, Part 2

by on May 28, 2010


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Yesterday’s part 1 of this series detailed the right mix of marketing, PR, and social media for recruiters today.

Now we continue with the right ways to build your social media brand.

6 Steps to Build Your Social Media Brand

  1. Secure your vanity name on all social media sites. As mentioned earlier, the “Big Three” are LinkedIn, Twitter, and Facebook. For a full list, Google: [Social Media Websites]. Do this quickly, before another obtains your name. If your name is gone, a nickname or pseudonym could work. Choose your “handle” with your audience in mind.
  2. Write a professional bio. You might have two bios (short and long), but include your accomplishments, a professional photo “avatar,” and contact info. When writing your bio, think about your unique background and a broad audience. For help, review others’ bios and/or Google: [How to Write a Professional Bio].
  3. Learn how the social media sites work. Each has their own how-to page and lingo. Visit the sites. Observe, listen, and watch what others do and how they’re interacting. If a friend or colleague is an active user, ask for help. You might also Google: [How to Use Social Media Sites].
  4. Build your networks. On LinkedIn, send “Please join my professional network.” On Facebook, send “Be my friend” messages. On Twitter, follow people who seem interesting to you. Many will follow back.
  5. Join the conversation. Post what’s going on in your life. You might find something interesting or have something in common (work life, travel, food, sports, politics, etc.) Post a comment or respond. Engage others by asking questions. For example, “Do you …?” or “How do you …?”
  6. Link your networks. Most sites have areas to connect other sites. This enables “networking leverage.” By connecting your full network, you will maximize your reach and build your brand further.

An Investment in Time

Social media takes an investment in time, like building relationships with clients, candidates, and industry partners. Remember the two parts: “social” and “media.” Both should be integral to your marketing strategy and incorporated into daily/weekly activities.

Keep in mind the 5 Es of Social Media:

  • Enlighten
  • Educate
  • Entertain
  • Empower
  • Engage

When used effectively, social media, marketing, and PR can be very powerful in building your brand and your recruiting business. All increase your name as an expert in your field: people find you; business flows to you; and your revenue increases.

Finally, you can create and manage your own brand.

It’s been said that LinkedIn is like going to the office, Facebook is like going home, and Twitter is like going to the bar. Hope to see you at the party!

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The New World of Social Media Recruiting, Part 1

by on May 27, 2010


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We live in exciting times. Remember the mid ‘90s, when the Internet was growing exponentially? It opened up the world with speed of communication and spread of information.

The Internet continues to transform the way people live and how businesses operate, including ours — search and recruiting. Now we manage databases and use new tools to efficiently prospect, manage relationships, and deliver for our clients and candidates.

After the Internet boom, media stories were written about what would be the next “big thing.”

Well, we have two big things happening now, in my view. The first is about energy. We can’t live without it and must find new sources of clean energy to satisfy increasing demand while protecting the environment. This is a topic for other experts.

But the “big thing” in recruiting and staffing is Social Media, and how it will increasingly change the way we do business.

Businesses are in the midst of great transformation. All centers around information: how to find it, manage it, and communicate it effectively.

We in recruiting are at the epicenter.

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Fordyce Forum: Learn 6 Ways to Bill Big in Today’s Market

by on May 8, 2009


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More and more, search and recruiting conferences are held at casinos.

Why is that? Maybe it’s because search professionals want to have fun and thrive on risk. All day, we take and manage risks. In what other profession, except for maybe real estate sales, can one mistake cost five figures?

I just trained at New England’s conference (NEAPS) at the Mohegan Sun casino resort. My topic was “Power Marketing for Today’s Economy.” We had a standing-room crowd and lots of interaction. Outstanding people and a great time!

Another bold topic is “6 Ways to Bill Big in Today’s Market,” and that just so happens to be what I will be speaking about at this year’s Fordyce Forum on June 11, held at another casino, this time, the brand-new M Resort in Las Vegas.

If you haven’t seen me train, I aim to deliver. My style is interactive, big-picture, and technique-oriented. I want you to take away ideas and methods that you’ve never heard before and put them right to work in your search and recruiting practices.

That’s how I’ll know if I’ve been a success — when I receive emails and testimonials after my training: “Mike, it works!”

Every topic I train on is customized for the audience and the times. My training is not off-the shelf. I spend considerable time preparing so you have a unique training experience. I do the same for my in-house training clients and my one-on-one performance training.

So, what’s my Fordyce Forum topic about? It’s about shifting gears in the way you think and approach the business.

It’s about rethinking, retooling, and reinventing. It’s about creating new areas of cash flow. It’s about new techniques for a new world. If you take the framework that we’re in the human capital business, not solely the recruiting business, then the sky’s the limit.

My Fordyce seminar has six parts:

  1. Thinking big. If you’re stuck at working and billing at certain levels, you’ve got to get unstuck. How to do it? It’s easier than you think. I’ll explain how.
  2. Taking risks. You’ve got to play in a bigger sandbox. And that means taking bigger risks. Not financial, but in the people you talk with.
  3. Upgrading your presentation. In this market, everything counts. From your website, to how you dress, to how you present on the phone, to how you follow-up.
  4. Going where the business is. This is the bottom-line between average billers and big billers. You’ve got to go where the demand is. I’ll talk about where that is today.
  5. Getting exclusives and retainers. Working contingency creates undo risk, especially in this market. The only real way to determine a true need is to receive dollars upfront.
  6. Doing more for your clients. What can you do to distinguish yourself from others? I’ll share actionable items that work for my firm.

In my seminar, you’ll learn:

  • Where the business is in today’s market.
  • A novel technique to get senior decision-makers on the phone.
  • How contingency recruiters can separate themselves from the pack and move into retained.
  • New ways to generate cash flow.
  • And much more…

I only have one hour to present “6 Ways to Bill Big in Today’s Market” at the 2009 Fordyce Forum. So it’ll be a crash course, but I invite you to join me as we take the recruiting world by storm!

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Let the Good Times Roll

by on Apr. 1, 2005


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I’ve been waiting four years to write this article’s title.

Since I like to integrate music in my training, I thought I’d try it in my writing. (For the past couple of years, I’ve been playing “We Are the Champions” for the industry survivors.)

Songs can grab attention, create a sensory reaction, and generate good feelings. There’s a marketing idea: Find out our clients’ favorite music genre or artist and forward an MP3 file.

The last time the job market was this strong was in the beginning of 2001, before 9/11 and before the stock market meltdown. Recessions are cleansing. Today’s companies are mean, lean, and hungry to hire. So are search and staffing firms.

If you’re reading this, you’re either a talented manager, an excellent consultant, or you’ve recently begun recruiting. Whichever, here’s where we’ve arrived:

We’re at the leading edge of a new jobs creation cycle that will last for years to come.

At the core, our business remains the same: To serve clients and identify talent.

Now we have new tools and new techniques that make us more effective and efficient.

Now is the time to harness what we’ve learned, take action, and savor the rewards.

Consultants across diverse industries and geographies report “business is back.” A common sentiment is this: “We’ve done a ’180′ from six months ago. We have a lot of new assignments and now candidates are hard to find. What to work on first?”

The same strategies apply in a candidate short market as in a candidate rich market:

Stay focused and disciplined.
Manage your time wisely.
Identify, evaluate and bond with top talent.
A-B-R-B (Always Be Relationship Building).
Follow-up, follow-up, follow-up.

The good news is that we can be ever more selective in the assignments we work. Higher supply of open positions puts us in a better position to negotiate higher fees and be more discerning with terms.

Many ask how can we “adjust” our clients’ thinking to this new world order (i.e., scarce talent), while upgrading contract terms. These are timely topics I review in my training this year.

Over the past few years, I’ve had the good fortune to speak one-on-one with hundreds of consultants. I’ve come to find that one overriding factor separates big billers from average ones.

It is this:

$300K+ billers know which assignments to work and which ones to let go.

Instinctively, this makes sense. If we spend our time only on assignments we can fill, then we’ll focus where the payoff is. This is more complex than meets the eye. Seasoned consultants seem to know intuitively which assignments and candidates to zero in on and which ones not to.

I’ve put together a guide to help in determining search assignment workability.

You may have seen something like this before. The same thinking can be applied for contingency and retained searches alike. I hope you find it to be a simple yet powerful tool.

Risk-Reward, Search Assignment Rating
(1 to 10 scale)

(1)Client status: Current (10), Referred (8), New (5)
(2)Responsiveness: ____
(3)Flexibility:
(4)Urgency:
(5)Ease-to-fill:
(6)Quick-to-fill:
(7)Exclusivity:
(8)Relative Fee:
(9)____________
(10)_____________

Total score:

70 to 80: Excellent assignment: Offer compelling value to capture business.

60 to 69: Good assignment: Standard fee range.

50 to 59: Fair assignment:? High end fee range.

Below 50: Unacceptable, pass on assignment.

By no means is this complete, e.g., how would you rate a ‘Past’ client for (1)?

A quick review of the categories above follows. It’s clear that a new assignment from a current, known client (1) should receive higher priority. Likewise, if a client is very responsive (2) and flexible (3) in the search parameters, then an assignment should be higher priority. Urgency (4) means that a client has a high need to fill. Ease-to-fill (5) comes from your market knowledge, while quick-to-fill correlates with supply and demand of candidates (is one available/qualified or do you have to recruit one?)

Exclusivity (7) is a very important factor: What is your relative competition (i.e., internal candidates or other recruiting firms?) If you’re retained, give a ’10.’ If there are more than three firms working an assignment, that’s a ’1′ in my book. Relative Fee (8) includes the pay-off component the dollar fee (not percentage) compared to other current assignments. If you add your own variables for (9) and/or (10), don’t forget to adjust the scale.

As you see, the total score corresponds to the fee range you may accept. This could be absolute dollars ($25K) or fee percentage (25%).

Of course, there are other negotiables (e.g., guarantee period, which must be considered).

Determine your bottom line and use this as your standard fee range. For example, my firm’s bottom line is working $100K exclusive assignments at 25%. If a retainer’s involved, we may go lower depending on the client relationship.

Always ask yourself this question first: Do you want the search assignment? If so, why?

The light at the end of the tunnel is shining bright. If the good times aren’t rolling for you yet, they soon will be.

One sure-fire way is to be more discerning in the assignments you work. (Another is gaining exclusivity with top candidates. Another still is ongoing training!)

If you’d like a page from my training materials entitled “Negotiating the Fee” which includes my “Risk-Reward, Search Assignment Rating” email me at mramer@ramergroup.com and I’ll send it to you.

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The Magic Bullet

by on Oct. 1, 2004


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I’m preparing for upcoming training events and need your help. What can I share with you to help increase your income? Think about all the steps in the placement process. I’m listening. {Pause} Try mental telepathy. >>> Got it! The most common question I’m asked is this:

What one technique above all others will have an immediate impact on my earnings?

I’m not sure I know of a “magic bullet” for search and staffing. It takes a combination of the right attitude, top communication skills, ongoing training, discipline and perseverance to perform at consistently high levels. Similar to high performing sales professionals in other fields, we must be driven to achieve. Following a quality-oriented, well-honed process is vital as well.

Our business can be simple in how we communicate with others. Scripts and presentations to clients and candidates can be learned. On the other hand, the placement process is complex. Managing expectations and closing deals takes experience.

I’m going to go out on a limb here about my one above all, “magic bullet” technique. Let’s call it an approach even a strategy which I believe is the most effective way to sustained, higher earnings. You’ve heard me and others talk about it before. “It” is exclusivity.

Since the advent of the web, it’s been my firm’s experience that there is a greater need for exclusivity in working with clients and candidates. Without “it,” other time-tested search and recruitment techniques are not as effective.

The Internet has changed the staffing business, because “information everywhere” has created greater transparency. Some candidates who see open positions on the web ask, “Why would the company pay a fee? Wouldn’t that put me at a competitive disadvantage compared to other non-fee candidates?” In addition, companies think posting jobs online is the expedient, easy way to finding the right candidates. We search consultants know differently.

Candidate Exclusivity

Let’s say you’ve received the resume of what you believe is a top tier candidate. Outstanding track record, great credentials, a proven performer who could command a higher comp package at competitor firms. Flexible, easy to work with and responds to your calls quickly. A dream candidate, you might think. Just one issue: His resume is posted online and is with three other recruiters. Your #10 candidate is market exposed. In my view, this candidate drops from a “10″ to below “5″ no matter how good he is. To prevent this, we need to ask questions upfront:

Is his resume posted with any job boards?

Has he “applied” to online postings or other job advertisements?

Has he sent his resume to colleagues and/or other recruiters?

Has he been on interviews in the last year?

Client Exclusivity

We all know the value of a well-developed client relationship. Also important to how we work is timing, i.e., where the client is in the hiring process. This impacts how we prioritize our time and focus our efforts.

Recruiting firms competing with one another often value referral speed over candidate quality. We shouldn’t have to work this way.

Sending a candidate’s name first to a company shouldn’t supercede a thorough qualification and proper candidate development. In reality, it often does: The party with the first date-stamped resume most times has rights to the fee. Many of us have experienced this unpleasant sticky situation. (In fact, this can backfire for all involved.)

Another common scenario is this: We market, market, market and…bing…we’ve got a new assignment and possibly what appears to be a good client in the making. Our new client seems easy to work with, the negotiated fee is above market standard and they’re responding quickly. “Terrific,” we think, “A few more like this and we’re set.” Just one problem. We didn’t ask about our relative competition:

How many other recruiters are working the assignment?

How many candidates have been interviewed to date?

If more than two firms are working a position and referred candidates have already been asked back, then our “# 10″ search assignment just became a “2″ no matter how great the client seems. If we had known prior, we wouldn’t have touched it with a ten foot pole. A client for the future, still possible. As for the assignment, it’s sub-par.

How to Guarantee Exclusivity?

1) Change your thinking. We all know non-exclusive assignments can burn precious time. And time is money. We must think of ourselves as talent acquisition professionals who offer management consultant services. It’s expected that we work quickly and deliver high quality work. Other service professionals, like attorneys and accountants, bill big hourly fees for their time and expertise. As soon as you begin thinking this way, you’ll begin to require exclusivity.

2) Change your approach. Only work exclusive or near-exclusive assignments. (Near-exclusive is defined as only internal referrals allowed with you being the only external firm.) Also, only work with candidates exclusively. To bill big in our business, we need to reduce risk and save time. The way to do it: Require either client or candidate exclusivity. Dual exclusivity is optimal. It’s how 1:1 sendout to placement ratios are achieved.

3) Make sure you get it in writing. Whether an exclusive client assignment, or a “good faith” candidate agreement for a specified time period. If you’re going to spend valuable time, get a written commitment.

4) Receive dollars upfront. There’s no greater way to guarantee exclusivity than to be paid retainers. Again, other service professionals often require it. Why not us? For clients, require engagement fees. For candidates, you may offer career coaching or job consulting services.

Working exclusively is in the best interests of all parties.

Think hard and compose a delivery strategy:

Why would a client work exclusively?

Why would a candidate work exclusively?

Why with your firm?

Why with you, specifically?

If you can formulate compelling reasons to work on an exclusive basis and effectively communicate the benefits to clients and candidates (and there are many) you’ll be on your way to a more lucrative recruiting career.

Exclusivity in the Numbers

For anyone reading this article, the following annual billings are attainable:

– 5 exclusive clients. Placing two assignments per client @ $100K comp. = $250K.

– 12 exclusive candidates. Placing one per month @ $100K comp. = $300K billings.

– Total with research support = $550K billings.

To help accomplish this, what we need is an exclusivity litmus test a series of questions to ask upfront as part of: 1) taking search assignments and, 2) engaging candidates. Then, we should customize our agreements and allocate our time according to the risk-reward ratio. More on this in my training!

If you agree (even disagree) that exclusivity could be our “magic bullet,” email me your ideas/comments at mramer@ramergroup.com and I’ll be sure to respond.

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Brave New World: Making Placements – Past, Present, Future

by on Aug. 1, 2004


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Our industry’s top consultants, managers, and trainers are great leaders. They are passionate about the business. They are innovators and risk-takers. They are skilled communicators who inspire others to greater heights.

Great leaders are optimistic visionaries. They have the capacity to interpret trends and foresee the future. This “first mover advantage” creates wealth.

Great leaders convey universal messages which appeal to the hearts and minds of many.

Thomas Jefferson inscribed “Life, liberty and the pursuit of happiness.”

John F. Kennedy evoked “We shall go to the moon and return a man safely to the Earth.”

In the same way:

  • Master artists create timeless works with their vision.
  • Legendary sports coaches use visualization techniques to win championships.
  • CEOs of high-performing firms craft mission statements from their vision.

Leadership in Search

Search consultants are leaders of the placement process. We lead clients. We lead candidates. We lead candidates to accept offers with clients. The most successful can vision a placement from the start of the process. They can predict the probability of a placement after initial conversations with clients and candidates.

Top consultants start with the end in mind. They have a plan.

An exercise many know well in achieving a larger vision is to write down goals (both business and personal) and a timeline to achieve them. Another is to visualize goals by drawing a picture of where you will be and what you will have at future dates (e.g., a specific car, house, travel destination, community position.) The key here is to be as specific as possible with imaging your goals (e.g., what model and color car or what you’ll be wearing at a future business event). The hard part for many is knowing what you want.

Testing Your Vision

Ask yourself these two questions:

1) Do you know what you want?

2) Do you know how to get what you want?

The answer to the first question is about vision. It’s about being passionate about something that truly interests you. The second, how to get what you want, is about goals. This involves creating an action plan, working the plan and committing yourself to realizing your goals.

Achievement of goals begins with a personal vision.

In my training I use a fun exercise that gets to the heart of what people truly want. I pass around a rectangular 3″ x 10″ green piece of paper to each attendee blank side up. When everyone has one, they flip it. On the reverse side is a mock $10 million check made out to cash. (“Don’t try to deposit it,” I say, “The money is in another account!”) I ask the group, “What’s the first thing that comes to mind?” To the readers of this article I ask the same, “What would you do with $10 million bucks?” In other words, if money were no object, what would you do? Your answer should help you discover your personal vision.

The New World of Search

My vision for this article came from today’s converging trends, including:

The Internet’s impact on the search business.
The recent grueling job market.
Economic and demographic trends.
Articles and books on leadership.
New Media + Reality TV.
The books Brave New World and 1984.

Have you ever read George Orwell’s 1984 or Aldous Huxley’s Brave New World? Influenced by World Wars, both depict anti-utopian worlds which limit human individuality and freedoms. The stories’ negative messages are so disturbingly powerful that their effect is to shock readers into preventing the possibility of these worlds from materializing. In 1984, Big Brother is always watching. Technology is ever-present and human relationships are destroyed by the state. Likewise in Brave New World, human life has been industrialized by technological “advances.”

We in search have entered a new world with new technologies and new rules.

It is for us to decide whether the outcome will be positive or negative.

New technologies will continuously change the way we do business. If we harness them to our advantage, they can assist us. If we don’t, they have the potential to erode the foundation of our business by diminishing our relationships with clients and candidates.

Let’s take a look at making placements in ten year intervals: In 1984 (pre-PC), 1994 (pre-Internet), 2004 (today) and 2014 (the fun part). To compare decades in time and predict how future placements will be made, we need a central theme. We’ll focus on what I see is at the core of the search business information:

How we learn, store and retrieve it;
How we use it and convey it;
How we manage it and make money from it.

Two caveats before proceeding:

Caveat 1: Since I wasn’t in the business in the mid 80′s, many who were have shared with me details of those times. Thank you.

Caveat 2: The following sections focus on big picture trends. Since space here is limited, I don’t describe specific search and recruitment techniques. Another time, another place!

Making Placements in 1984

Signs of the Times: In 1984 Ronald Reagan won a landslide second presidential term as the “great communicator.” His supply side economics and tax cuts stimulated the economy and created jobs. High inflation and interest rates were the norm (the prime rate was about 12.5%), but times were better than the no-growth stagflation of the 1970′s. Aiding growth was a drop in gasoline prices from a high of $1.30 per gallon in 1982 to $.90 in 1986.

The fax machine wasn’t yet widely used by most American businesses (even though it was invented in 1843 before the telephone!) Microsoft introduced its Windows operating system in 1983 and personal computers appeared more a novelty than a business tool. Typewriters were more common than PC’s. The Soviet Union was still the Soviet Union.

Large search firms worked nationally and internationally because they had offices in many cities. Smaller firms tended to work locally in cities or regions. As a result, most recruiters met with clients and candidates in-person. This solidified relationships.

The Approach: New clients and candidates were found by telephone and networking. (“Tried and true” techniques that won’t ever go out of.) New job leads were found in newspaper and trade journalified ads. Phone numbers (vital information to recruiters) were found in industry directories, the yellow pages or through telephone operators. Imagine now sitting down at your desk with no computer to turn on. Only the phone. This might be a good idea for many today to increase productivity and earnings!

Information about clients and candidates were written and stored on 3 x 5 index cards categorized in desk-top file holders. (Remember those boxes?) Paper resumes were stored in file cabinets, organized alphabetically or by discipline.

In those days, resumes weren’t sent often to clients. Verbal presentations secured interviews. Written fee agreements weren’t yet standard practice. Since there was no physical tracking of information, legal issues inevitably flared up. Some say practices were less ethical than today; making placements was more “hard core” sales. Closing candidates was more direct such as, “Let me tell you why you should take this job.”

The Numbers: Placements were made mostly by instinct and intuition. Short-term results (closed sales) carried greater weight than longer-term strategies (relationship development). Measurement tools were basic:

Calls per day.
Job orders per week.
Candidates recruited per week.
Placements and billings per month.

In the 1980s and before, strong relationships were built based on a person’s word. The same holds true today and for the future: Our word must be our bond.

Making Placements in 1994

Signs of the Times: In 1994 the U.S. was enjoying a “peace dividend” as the world’s sole superpower — from the end of the cold war and the breakup of the Soviet Union. This gave President Clinton the latitude to “reinvent” government with deficit reduction, welfare reform and small business tax cuts. The prime rate in 1994 rose from 6% to 8.5%, reflecting a resurging economy. Gas prices were about the same levels in 1994 as they were a decade earlier (lower in inflation adjusted terms). It was the start of a multi-year bull run for the job market — a golden era for search and placement.

The personal computer was making its way to recruiters’ desks. As a stand alone, non-networked machine with little storage capability, its use as a productive tool was limited to data processing (resume writing and spreadsheets). 1994 was the year that Netscape’s precursor company, Mosaic Communications, built the first web browser. (Al Gore had not yet invented the Internet.) Though, the coming “information superhighway” was about to explode as no one anticipated.

At the same time, the world was getting smaller. NAFTA was passed in the mid 90′s creating a North American free trading region. NATO accepted former Eastern bloc nations. Europe was preparing for its monetary union and Hong Kong for its handover to China. Globalization was the watchword as old barriers were breaking down.

The Approach: Making placements was becoming less sale-sy and more consultative. Information stored in databases assisted in engaging clients and candidates. “Private” information the kind that leads to placements — still came from the tried and true methods: Sourcing by phone and effective networking.

Managing information was always the ticket to increased earnings.

Now the PC could do it efficiently at low cost.

Some firms built rudimentary databases early on. Others bought the first industry-specific database packages. With contact management software, firms could now more effectively follow up with prospective clients and candidates by logging personalized data, e.g., birthday, kid’s names, favorite sports team. And they could better track their own activity, empowering consultants to self-manage.

The Numbers: Activity-based analysis and “management by the numbers” were becoming standard. Measurement tools were expressed in ratios:

Sendouts to placements.
New job orders to placements.
Recruited candidates to placements.
Total billings to placements.

Search firms became aware of a powerful combination: Information management was central to a longer-term relationship strategy and productivity could be improved by managing results.

Making Placements in 2004

Signs of the Times: The boom years of the mid-to-late ’90′s created over 15 million new jobs, primarily in the service sector and technology-based fields in IT, communication services and bio-sciences.

The party came to an end after the year 2000. The stock market bubble popped. Financial scandals rocked the corporate world. The events of 9/11/2001 led to Mid East wars. Gasoline prices spiked to over $2.50 per gallon in some areas.

A perfect storm created a crisis in confidence.

Three million jobs were lost from 2001 through the first half of 2003. Corporate layoffs were a sign of the times. Although no specific figures are available, an informal survey reveals that over 50% of search consultants exited the business and nearly 1/3 of all firms closed shop. The largest search firms dripped millions in red ink, while many smaller firms were reduced to skeleton staffs.

With the combination of fewer jobs and top talent itching for new opportunities, companies used the Internet job boards to fill open positions. Companies also used the opportunity to data dump tens of thousands of resumes into their corporate databases. In addition, third party recruiters went to work in the corporate world and began putting to use proven search techniques. All in the attempt to save budgets, control expenses and save the CEO’s job.

With an eye toward reelection and to stimulate the economy, George Bush II cut taxes while boosting military spending to fight terrorist wars. With inflation non-existent, the Federal Reserve dropped interest rates to 45 year lows (a 1% prime rate) which boosted economic growth and rekindled the job market. The massive fiscal and monetary stimulus boosted demand and led to over one million new jobs created from Q2 ’03 to the Q2 ’04. For those who survived, as some say “the worst job market in 30 years,” the Internet created new rules of the game.

The Approach: With networked PC’s, powerful databases, digital high speed Internet all at low costs — search firms can now “data mine” and manage information more efficiently than ever before. Key contacts are downloaded from corporate websites. Firms tap into on-line candidate databases to make them their own. The “Internet Researcher” is a valued member of the search team.

Today most agree business is bouncing back. But somehow it’s different. Tougher to get higher fees. Clients are more demanding, very selective and taking a longer time to make hiring decisions. At the same time, top candidates have many options. In high demand niches and geographies (e.g., legal in the Northeast corridor, bankers in the Sunbelt and heath-care nationwide), times are very good, because talent is scare. The premium, again, is reverting back to the relationship with the candidate.

Those who survived the last three years are adapting to a new data-rich, Internet world. Top consultants are asking more insightful questions before accepting search assignments. In working with candidates, they are screening rigorously before taking action. Behavior-based interviewing, testing motivation and covert reference checking are becoming common practices.

Search firms are harnessing the Internet to offer clients value.

Firms are developing a long-term relationship development strategy in conjunction with building a brand that stands the test of time. To demonstrate value, search consultants must be management consultants, industry experts, trusted advisors and career developers.

For candidates:
What are the true motivating factors which will prompt a career move?
How can we raise their confidence and prepare them for interviews?
How can we advise them on their career goals?

For clients:

How can we make their lives easier?
What’s the “value proposition” of our service?
What industry and competitor knowledge can we offer?

Building brand loyalty is paramount to establishing exclusive relationships.

These are the kind of relationships in which clients call us first with new search assignments. And, the kind where top candidates call us with jobs they want — whether they be with specific companies of interest or whether they find the leads on the Internet. We know we have the right relationship, when candidates see the value of the service we provide.

The Numbers: The combination of the Internet’s impact and the recent job market has made search firms rethink their business models. Productivity metrics are used to manage profitability:

Quality search assignments per 100 calls.
Top tier, placeable candidates recruited per 100 calls.
New client and candidate calls per hour.
Billings per time period (hourly, daily, weekly).

With job boards prevalent and candidates exploring multiple opportunities, search consultants are getting wiser. They are developing exclusive relationships with clients and candidates by asking, listening and delivering what their “customers” want. The by-product is a stream of valuable referrals into the future. Many know it well: Focus on your customer and the bottom line takes care of itself.

Making Placements in 2014

Signs of the Times: In 2012 the U.S. elects its first female president. (Guesses anyone?) Interest and inflation rates are low by historical standards — in the mid single digits — as “information everywhere” continues to reign in price pressures.

In 2014 the service sectors dominate. Greater than the influence of technology are demographic trends. Aging baby boomers stretch the U.S. social security trust fund to the limit. Energetic seniors demand higher levels of service in healthcare, hospitality and financial areas. (Good disciplines to specialize in.)

Impending Crisis: Too Many Jobs and Too Few People (a book published in 1993) accurately forecasts the U.S. labor market. In 2010 there are 167 million open jobs with only 157 million people to fill them: A shortfall of 10 million. The largest growing occupations are in computer services. The greatest shortage is in healthcare.

In select niches, search fees rise to 40%+.

The U.S., still the sole economic and military world power, is losing ground to China and the Far East. The world has partitioned into three primary trading blocks: The Americas, Europe and Asia, including the sub-continent. 80% of all U.S. manufacturing is outsourced to low cost, newly-developed countries. Ever since gas prices hit $4.00 per gallon in 2010, OPEC’s influence has diminished. Advanced energy sources hydrogen, solar and wind are feeding an increasingly power hungry world.

The Approach: Visual Communication Devices (VCD’s) have a profound impact on the way search consultants do business. The phone and keyboard of a decade earlier are obsolete. PC’s now double as video-phones. Great leaps in bandwidth and storage capability enable sending digital audio and video messages instantly, globally.

Standard IT formats morph from words to images. Clients and candidates can observe our presentation from anywhere. When we meet “face-to-face,” we can see them and they can see us. We no longer refer resumes to clients. We conduct, record, save and send digital video interviews.

As the world becomes increasing smaller, physical location is less important. Distance and time are squeezed. Virtual offices and flexible office arrangements become the norm. The “wireless world” connects all seamlessly. Large search firms are dispersed into virtual deal teams. The major job boards no longer exist in their former forms: In the talent drought, they were not producing value relative to their costs.

With all the technological advancement, search firms thrive because humans like to deal with humans. Artificial intelligence is still decades away.

Brand and brainpower are the new capital.

In 2014 there are half the search consultants practicing as compared to the height of the late 1990′s. This is not a reflection of the times. In fact, the shortage of service sectors jobs is creating tremendous demand for search services. Rather, firms large and small across a wide spectrum of industries bring in-house highly skilled consultants to save costs. CEO’s have gotten wise: Human capital is viewed universally as the most valuable of all corporate assets. And companies now pay up for the best search talent.

Independent search consultants are now management consultants — in not only talent acquisition but also talent retention. Clients work with fewer consulting firms and are screened for fit — culturally, ethically and in working-style — before engagements are granted. Since most HR functions have been eliminated, search consultants are seen as outsourced employees. Human capital is viewed by C-levels as a strategic imperative.

The term, recruiter, is used less and less.

Top search consultants are career managers.

In 2014, consultants no longer “recruit.” They grow “communities of networks.” They accomplish this by developing enduring relationships with top-performing candidates in the same way sports agents have done with athletes for decades. They focus — not on the next placement — but rather on how they can assist candidates in achieving their career goals.

The Numbers: To quantify and track results in this high demand, talent-short world, new client-centric criteria are used:

% time spent on high value, customer-focused activities.
Exclusive candidate agent contracts signed per month.
Repeat client engagements per quarter.
Client and candidate satisfaction scores.

In summary, the placement-focused model of the 1980s transforms into a client-centric one by the second decade of the 21st century. Performance and activity is still managed by the numbers.

The shift is in what’s being measured. Quantity of results (e.g., sendout volume) is replaced by quality of experience (e.g., client and candidate satisfaction). Those who adapt profit more and build wealth.

What’s in store for the search industry in 2024 and beyond? Use your leadership and visionary abilities. Email me your predictions at mramer@ramergroup.com and I’ll return send my “Double Your Billings Scorecard.”

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Save Time, Bill More by Reducing Risk

by on Apr. 1, 2004


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Search consultants by nature are risk takers. Whether we are owners, managers, recruiters or researchers, every time we pick up the phone, we take risks. We all know too well that the placement process can break down at any time for any reason. This costs us time, money and heartache.

Webster’s Dictionary defines “risk” as “the degree of probability of loss or injury.” Many know that the Chinese character for “risk” translates to “danger and opportunity.” By managing danger, we can find time-saving, big-earning opportunities.

Question for you:

  • If you’re a 20+ year veteran in the search or staffing business, what’s more valuable to you? Time or money?
  • For those with less than 10 years in the business, how would you answer?

The majority of veterans would probably answer: “Time.” The majority of those with less than 10 years might answer: “Money.” What do the wise veterans know?

Time is our most precious resource. Money can always be made.

Once gone, time cannot be replaced.

The same thinking should be applied to our business. How many contingency recruiters feel they make no money 98% of the time? And, that it’s in the remaining 2% where the big money is made? What if we can reduce the 98% to 90% — where we save valuable time — which increases the 2% to 10%? Doing the math, 2 to 10 is five times our earning power.

How can we apply risk management methods in our aim to make placements? Much has to do with how we manage our time to produce desired results. We’ve all heard it: Those who are well-organized and plan on a daily basis are proven to consistently outperform those who do not.

If I were to call you and ask you four simple questions, could you answer them cold?

1- How much do you plan to bill this year?

2- What’s your average placement fee?

3- How many placements a month do you need to reach your annual goal?

4- Have you written down your goals?

Think about it. The more time invested in any activity (personal or business), the more skin you have in the game. And the more risk (and potential reward) increases. This is probably the reason why, the older we get, the more risk-adverse we tend to become.

The same thinking of risk must be viewed in the placement process. I have a training program called “The Art & Science of Search: 40 Steps to Placement.” If we’re working on contingency and the process breaks down at the 38th or 39th step, we earn nothing. It’s happened to us all and it hurts (if our clients only knew!)

In my view, the search business is all about risk management: How to identify opportunities at various stages in the process, how to qualify next steps and how to ensure all goes in the direction to secure a placement.

Let’s take a closer look at how we can reduce risk in the three primary stages of the placement process: 1) Client Development 2) Recruiting 3) The “Art of the Deal.”

1) Reducing Risk in Client Development

Since 2000, my firm has become significantly more selective in the search assignments we work. In times when many a good recruiter would have reduced their standards to “work a job order,” my firm has become more discerning. In fact, since the beginning of 2003, we have turned down about 3 of 5 potential assignments because they don’t pass our criteria.

Everyone has different standards for what qualifies as a workable assignment. Some parameters we all know well. In qualifying a client;

  • How long has the position been open?
  • How many candidates have been interviewed to date?
  • When would you like the right candidate on board?

Over the past year, my firm’s criteria have become more stringent, including;

  • We won’t work a contingency assignment unless it’s an exclusive.
  • We don’t work any assignments less than 25%.
  • We don’t work for fees less than $25,000.
  • Most times we won’t begin a search unless we receive an engagement fee upfront.

Nothing speaks louder from a committed client

than sending dollars upfront.

If you’ve made more than two placements with a client, you’ve earned the right to ask for and receive engagement fees. If presented right, you might be pleasantly surprised at the outcome. Try it. This will dramatically save time, boost your billings and reduce your risk.

2) Reducing Risk in Recruiting

Ask many recruiters about how they feel about the internet. Since the advent of the web, is the search business better or worse off? Many might agree, “The Internet is a phenomenal research tool.” Others may disagree, believing it’s more challenging now because the Internet has increased risk: “Candidates and clients are harder to control.”

My firm rarely posts on-line ads. In my view, firms that do, diminish the perception of a search firm’s value. That’s not what we’re paid to do by our clients. As one of my firm’s valued clients says, “Mike, if we wanted to post on-line ads, we’d do it ourselves. We don’t need a search firm to do that.” I agree wholeheartedly.

Let’s quickly analyze a candidate received from an on-line service:

  • He/she is most likely responding to many, many postings.
  • He/she may be interested in making a career move for “low value” reasons.
  • He/she is not loyal, working with many parties.

I see big red flags in “Internet resumes.” Unless these candidates are very carefully screened and qualified for activity, there are major risks which can burn valuable time. Let HR spend their time screening these candidates who are more likely to turn down offers because they’re looking at many opportunities at the same time. Although many may have made placements with candidates received from on-line advertising, this will continue to diminish over time. And, so will your “real recruiting” skills.

We all know the advantages of working with recruited candidates:

  • Control. (A higher probability you are the only one working with the candidate.)
  • Relationship. (Candidates will share information, since no competing interests.)
  • Value. (Candidates are usually the higher performers.)

In my experience, there is no substitute to “real recruiting” in maximizing earning potential. Getting on the phone, researching, calling prospective candidates and networking effectively.

“Real recruiting” requires higher level skills and more time investment.

Over the long run, this is where we save valuable time,

earn significantly more money and reduce risk.

Shrewd clients can eyeball a resume and see on paper whether a candidate was recruited. This is partly what we’re being paid for. It is also a key factor in whether we receive repeat business.

3) Reducing Risk in the “Art of the Deal”

What industry trainers preach and wise veterans know is that there’s one certain path to billing more in less time. And that is reducing risk in the placement process.

The “Art of the Deal” starts at the point when we have arranged an interview for client to meet candidate. It’s our job to drive the process and coach both parties to placement.

As many know well, there are key “leverage points” in the process that, if handled correctly, can significantly increase placement probability. The main ones are:

  • Before the 1st interview: Coaching candidate and client.
  • Before the 2nd interview: Setting up expectations.
  • Before an offer is made: Maintaining control.

Those who have seen my training know that I place great emphasis on the beginning of the placement process. From the start, I’m interested in the motivation of both parties. How strong of a need does the client have to fill an open position? How “bad” does a candidate want to make a career move to my client? If I don’t get a sense that these are strong indicators (at least a 7 or 8 out of 10), then I cut my losses and go on to the next. In my experience, this saves valuable time and reduces risk.

What are the signs that you have an interested client or candidate?

Nothing speaks louder than action (i.e. response from people.)

“Action signs” include:

  • After you leave a voice message, your call is returned promptly.
  • After you send an email, your message is returned in a timely manner.
  • You ask a client or candidate to get back to you at a specified time and they do.

Gauging and managing motivation throughout is critical to achieving placement success. Through the process, if a candidate or client has changed their motivation, then it’s important to have a “heart-to-heart” talk immediately. If you can’t realign motivation and “desire” has shifted because of external factors out of your control, then it’s best to cut your losses and go on to the next. The path to take from this point is to leverage the relationships you’ve built and the time you’ve invested to move toward placement.

If a client cuts the cord on a search you’re actively working, find out the reasons why, ask what hiring needs there will be in the near future and ask for an internal referral to another hiring manager who has staffing needs. You’ve earned the “right of referral.”

On the candidate side, it’s important to ask on an ongoing basis, “Has anything changed since the last time we spoke?” If a candidate does an unexpected about face while in the interview process, find out the reasons why. If for unforeseen circumstances, have a “heart-to-heart” talk, cut your losses and move on.

If motivation is not strong, don’t pull the candidate through the process.

They’ll break your heart every time.

Instead, save valuable time by leveraging the relationship you’ve built and ask for referrals. Who else does the candidate know who may be qualified for the position? What positions are open with his current employer and who is the hiring manager? Again, you’ve earned the “right of referral.” In addition, you’ll earn great respect from your client by conveying the reasons why this candidate is no longer available.

In summary, reducing risk throughout the placement process is paramount to saving time and billing more, especially for those working on contingency. In the beginning, the methods by which clients are developed and candidates are recruited will have a great impact on your ability to control risk. Always strive for exclusivity.

You may think you have a great client, but if they’re working with more than two recruiting firms, beware. You may think you have a top tier candidate, but if he/she has applied to more than two companies and/or is working with more than two recruiting firms, beware. In the Internet age, we must screen rigorously upfront for both candidate and client activity to reduce risk.

How to guarantee exclusivity? On the client side, receive engagement fees. On the candidate side, receive a signed “exclusive candidate agreement” in which your firm has the sole advantage to work with a candidate for a specified period of time.

Like a great American once said, “I have a dream.” My dream is that all recruiting firms receive engagement fees before starting searches. That we don’t discount fees and are paid our true value.

Imagine what would happen in our industry and to our profession, if we collectively started working this way. In my view, it starts with developing great client relationships. If you’d like my firm’s “Great Client Checklist” email me at mramer@ramergroup.com and I’ll send it to you.

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“How To Keep Your Clients Coming Back”

by on Nov. 1, 2003


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A wise, long tenured veteran in the search business once said to me,

“Our business can be very complex, yet at its heart it’s very simple.Always KISS [Keep It Simple Stupid]: It’s all about servicing clients.”

How very true. With all of our technology, successful search consultants know it’s still the people skills the human touch — that separate the $300K+ billers from the rest. Unquestionably, the latest technologies can increase our effectiveness. The foundations of great service businesses are built on both the efficiency and know-how of those performing the service. The underlying secret to the search business lies in creating effective processes in both marketing and service quality.

Think for a minute about the service professionals in your life: Your doctor, your lawyer, your accountant, your financial advisor or insurance salesman. How did you initially come to them? Referral from family or friend? Convenience? Maybe, price? You heard “they were good?” How long have you used their service? Why do you continue to go back to them? Do they meet or exceed your expectations every time? What would cause you to look for a different professional? Think about the same for your search business.

The holy grail of search lies in deliveringthe kind of service where clients always come back.

Early in my career, I was fortunate to have attended a management development program with a Fortune 50 bank a world-class service company. Many of the classes emphasized service quality. Two Disney-style courses I remember were: “How To Delight Your Clients Every Time” and “The Magic Of Customer Service.” The same rules apply today for our search businesses past, present and future. The question now is:

What can we do to increase the quality of our service?

Why not ask our clients the very people we are servicing?

In my first work assignment following the management program, I had the opportunity to write a “Client Satisfaction Survey” for our region’s most valued business clients. One of the survey’s questions was, “If you could choose to meet any person in our company, who would that be and why?” Not surprisingly, the survey came back with multiple answers citing the CEO.

So we put together an event with the CEO in attendance as the keynote speaker. We had a terrific turn-out and a room full of satisfied clients. The buzz generated in the marketplace increased referrals and led to referrals and new business.

Now, I’m not suggesting that you ask the same question to your clients. Reason being — I’m not sure how thrilled they would be meeting the CEO of your firm! But the idea here is clear:

KISS: To keep our clients coming back, we need to learn what our clients want, then deliver it and exceed their expectations.

Another survey question we asked was, “What can we do to service you better?” Answers came back such as, “I’d like to be called once in a while when you don’t want to sell me something.” So, we implemented a Service Quality Calling Program. On a consistent basis, our sales people (whose titles were Relationship Managers) would call quarterly to ask, “Is there anything we can do to assist you with at this time?” Mostly, answers were, “Not now, but thanks for calling.” The result: A positive, service quality reputation developed which led to measured, increased client retention.

Create a client satisfaction survey, written or verbal, and ask your clients how they want to be serviced. The best ideas can come from them.

Those who have seen my training know that I emphasize why it is so important to be a consultant to our clients. The same approach is closely tied to how we service them. Thinking like a consultant, let’s ask the following service quality questions from our clients’ perspective:What do our clients expect from us?

  • Being available when they call us.
  • A can-do, communication.
  • Qualified candidates.
  • Reasonably fast service.
  • Competitive pricing.

What can we offer our clients to exceed their expectations?

  • A trusting, open relationship.
  • Anticipating their needs/thoughtfulness.
  • Industry-specific market knowledge/intelligence.
  • Our advice, counsel and/or recommendations.
  • Referring top tier, excellent fit candidates in less time than we said we would.
  • Your idea: _______________________
  • Your client’s idea: _________________

(Notice I didn’t mention price! In fact, higher fees may equate to a higher level of perceived service quality!)

To exceed client expectations, we need to deliver what we said we would in the time frame we said upfront.

10 KISS Service Quality Ideas:

  1. Communicate with your clients on a consistent, regular basis, whether it by phone and/or email. My firm sends a valued-added email to our industry specific client segments on a quarterly basis.
  2. Send a personal note and/or article in the mail that you thought a client would be interested in. (Even if they don’t, they’ll appreciate your thought.)
  3. Take your client to lunch (or a sporting event or a concert) for no reason other than to get to know them better. Or send them the tickets!
  4. Send holiday cards. An e-card can be fast and cost-effective.
  5. Tell your client a memorable story. Laugh with them.
  6. Share industry specific knowledge that will help them “look good” internally.
  7. From your conversations, anticipate their need to fill an open position and call with a qualified, motivated top candidate.
  8. As highlighted above, create a “Client Satisfaction Survey” designed to ask your clients how you can increase your service quality.
  9. Your idea: ________________________.
  10. Your client’s idea: __________________.

In closing, I’d like to leave you with one more thought. As we know, search and recruitment is a sales business. Yet at its heart, it’s about service quality. We have numerous sales figures we’re tracking: # of marketing calls/day, # of sendouts, sendout to placement ratio, etc. Why not consider tracking service quality activity as well as sales and reward staff accordingly? Ideas for service quality tracking are:

  • Phone calls and/or letters received from clients commending service quality.
  • Client Satisfaction Survey scores. (CSS’s)
  • Track and/or record Service Quality Calls. (SQC’s)
  • Implement Service Quality Awards — monthly, annual. (SQA’s)
  • Your idea: ____________________.
  • Your client’s idea: ________________.

In summary, by taking simple steps to increase your service quality, you can significantly increase your firm’s repeat business and keep your clients coming back. The time to implement such programs is now, just at the market is poised to strengthen in the new year. If you’d like to receive my firm’s Client Satisfaction Survey (CSS), email me at mramer@ramergroup.com and I’ll forward it to you.

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Being a Great Storyteller: An Inside Look at Real Deals

by on Aug. 1, 2003


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The best industry trainers, managers, and search consultants are great storytellers. They have an uncommon ability to convey their own experiences in a vivid, engaging style. In the process, they captivate imaginations and transfer their wisdom. Their stories are timeless and their messages are memorable.

In January this year I heard a non-industry speaker whose story was so powerful that it changed my perspective on working through the current business climate. The speaker was a POW during the Vietnam War who shared his story about being locked in a ten by three-foot cell for nearly seven years. That’s 2,555 days — over twice as long as today’s jobs recession.

The power of his story was in his personal growth during that time — how he learned from his surroundings, communicated with others, kept a positive mental attitude and trained his mind to overcome all odds. (All reasons why a military background can be a great training ground for search.) His experience certainly puts recent business challenges in perspective. One of this speaker’s main messages was describing how it could be “darkest before dawn.”

To many in search, that time felt like this past April in the midst of the Iraq war which coincided with primetime hiring season. Decision-making seemed to stop then and to extend this long-lasting, stagnant job market. The good news going forward: Many are now beginning to report a noticeable up-tick in new search assignments across a range of disciplines and geographies.

Perhaps, pent-up demand? Or, perhaps, the light at the end of this “jobless recovery” may be finally in view. The recent rise in equity markets signals increasing company profits, which will lead to new job creation. Challenging times builds character, they say. With all of our new found character [read: reduced earnings], what can we do now to capitalize on what we’ve learned over the last few years? Let’s look to leverage our experience to share our stories — about how we made it.

How did you do it? What worked for you and why? Think back about the process, techniques and results of your placements since 2001. The storytelling gems and valuable techniques are in there. Are you ready to put to use your well-earned knowledge — your success stories — for the coming jobs resurgence?

Great Storytelling

We all have great stories to tell. Life stories. Uplifting stories. Funny stories. Tragic stories. War stories. “The First Time I Ever…” stories. Success stories. We “own” our stories. They come from our individual life and business experiences. They make us unique. Like telling a joke, a great story can make us memorable.

Whether we’re working a desk, managing staff, or managing an office, we all have stories to use to our advantage. If we can catalog our stories, mentally or in writing, and recall them for the right situations at the right time, they can be valuable tools to connect with people. Stories can help us engage new clients, win new business and recruit top candidates. Storytelling can even help us make placements, train others and build businesses.

One of the secrets of great storytelling is to use descriptive, imaging words to “bring to life” and “paint the picture” in the listener’s mind. Of course, an engaging delivery is key as well.

Finding Your Stories

In my training, many have asked where my placement techniques come from. My best estimate is about 75% I learned from others and about 25% I’ve innovated on the job. Many know first-hand that “experience is the master teacher.”

There’s an old Chinese proverb you may have heard: “I hear and I forget. I see and I remember. I do and I understand.” Translation: “Do it and you will learn it.”Inspiration and ideas are all around us. You, too, can be an innovator of new search methods, if you experiment with new ways and see what works. The key here is to be perceptive about the world around you.

Our best placement techniques come from our own experiences — the stories about deals done. Think about what’s worked for you and why.

Look around your office. Studies have shown that the look and feel of your office can affect mood and performance. Do you like your surroundings? What would you change, if you could? My office is light blue, my favorite color, a soothing tone to calm my type A personality.

To my left, a map of the U.S. (my firm’s territory) and a framed owl I painted twenty years ago (my creative inspiration). To my right, a wall calendar reading this month’s saying, “Optimism: A bright outlook transforms potential into reality.”

Each resume on my desk conveys the story of a candidate’s life’s work.In each resume there’s valuable information — terms and descriptive language — about job responsibilities and competitor firms: Companies to approach for new business. Think about it. Resumes reflect candidates vacating positions — potential leads to win new business. In the “Personal” section at the bottom of many resumes, clues to connect with candidates via our stories.

My sendout sheet, hung right in front my eyes, is packed with “deal stories.”

  • What did I do to get each search assignment? Why was it a quality one?
  • How did I negotiate the fee? What were the terms? Could I have done better?
  • Where did I find the candidate? Why was this person placeable?
  • What were the challenging points I had to overcome?
  • What were the key elements on both sides that made the deal go?
  • How much time did it take? My firm’s ROI? What was the fee earned?
  • What did I learn that I could incorporate into future deals?

In the left drawer of my desk are invoices and copies of checks. Big checks. The end result of successful deals my business success stories.

Strategy First

Before any execution, a clear strategy must be in place. As Sun-Tzu’s Art of War states for all times, “Every battle is won before it is ever fought.” Pre 9/11, my firm had specialized primarily in the financial industry in the greater New York metro area. With the national tragedy shutting down stock exchanges (and the Twin Towers smoke seen from my office), I sensed I needed to shift my firm’s strategy quickly. And then execute.We all know how a strategy of diversification works to minimize risk. In the last few years, if you had been fortunate to already have specialized in select “hot pockets” (e.g., the mortgage industry or areas in healthcare or insurance), great for you.

My firm was not as fortunate, though followed this path: A strategy of diversification and flexibility together with a hard, smart work ethic meant thrival (thriving survival). In an uncertain Wall Street job market, I knew my firm needed to go where the demand was both geographically and in higher demand niches. Within weeks after 9/11, we went from a regional market to a national one. The strategy included “moving up” by only seeking out and placing $100K+ assignments and moving toward retained search. Going forward, 25% would be the floor for all acceptable fees. It was the classic “national reach at a higher level” strategy. We also moved into related high demand niches and other industries. And we started new business lines associated with search where we could leverage our contacts, knowledge and experience.

Deal Stories

Below I share five placement stories post September 2001. I chose these for their diverse appeal, illustrative messages and lessons learned. If you have similar stories, hopefully seeing them in writing will “drive home” your thinking of “I did that. I can do it again.”You’ll see I don’t name clients or candidates for confidentiality reasons, though do share details of strategy, execution, technique and results. For reasons of space here, I highlight key points and don’t write complete details. For those book publishers reading, perhaps a future book will describe all!

Deal #1 — Internet Tools: Finding & Placing Top Tier Candidates

An old-time contact from grad school, Paul, calls me. With an MBA, fluent in Spanish, and about 15 years’ experience, he’s looking for a job. So as we’re speaking, I’m consulting him on job search strategies and whether he already did an Internet search. He says no he doesn’t have the time and he doesn’t know how to reach the right people effectively. In the end, my firm didn’t place Paul primarily because his experience was Internet related post the dot-com crash. But the conversation sparked an idea.

Storyline #1:

Instead, we would start tapping into online candidate databases (e.g., Hotjobs and Careerbuilder) to look for the diamonds in the rough those candidates with unique skill set combinations, who needed professional assistance with their job search. (At the time we rarely placed Internet job postings but did subscribe to candidate databases, primarily for networking and sourcing candidates.) After identifying unique candidates and qualifying them for limited activity, we would go back into web based engines to locate job opportunities and market them to prospective new clients.

Plot #1: Into the candidate database search engines went parameters: [MBA] [spanish language] [finance] [new york or new jersey]. Among those returned was Rodrigo and his profile. Picture perfect. Tremendous background, credentials, track record and salary for his eleven years experience. He was from Brazil, earned his MBA from Thunderbird and was a CPA. Earning $90K plus a 10% bonus. Currently Finance Manager with the Latin American food division of a Fortune 500 firm in the New York area. Prior experience included six years with the “Big 4″ accounting firm, KPMG Peat Marwick.

I thought, the right hiring managers would drool over his background. In speaking with Rodrigo, he was what us search consultants look for in candidates: Highly motivated because his division was reorganizing, just beginning his search, didn’t have the time or real know-how to conduct an effective job search and was open to all geographies/opportunities. A great plus was his language skills: He would be able to conduct interviews in his native tongue, demonstrating a choice skill while bonding with the hiring manager. The one catch he was on a temporary work visa. We could cross that big bridge, I thought.So into the Internet search engines we went — this time as Rodrigo’s “virtual career agent.”

Inputted were the same search parameters sans location since he was open geographically: [MBA] [spanish] [finance manager or director or vice president]. Out came over 25+ open positions nationwide at the Finance Manager level and higher.For best fit, we focused on openings with international divisions of Fortune 500 firms. We then began sourcing hiring manager names with a goal to get him interviews. Presenting him to five companies with open positions resulted in three interviews, two in the local NY area and one in Chicago.

One company, a NJ based division of global publishing/education company, had what seemed to be an excellent fit. However, it took 10+ sourcing calls to get the right hiring manager’s name. The company’s byzantine structure turned out to foster a dysfunctional relationship between HR and hiring managers. One “inefficiency” which worked to our advantage.

Once we did reach the hiring manager, he was very easy to talk with probably because no others had gotten through and called him on this opening. The hiring manager (very nice guy, easy to work with) had what he said were “hundreds of resumes” and hadn’t started the process, but wanted to hire the right person quickly because of business needs. HR was just pushing paper on him another “inefficiency.”

At the same time, he told me that the position would pay approximately $100K plus a 25% target bonus. A nice increase for Rodrigo, I thought. His company’s fee structure was set at 25% of base.

Climax #1: The hiring manager didn’t have to look through his stack of resumes for his choice candidate. Rodrigo interviewed and won the job. HR didn’t rear its head until about halfway through the process to assist with final interview coordination and the offer letter. As well, Rodrigo’s work visa was handled by HR and through corporate offices in London. (An issue HR preferred not to deal with, I’m sure.) However, the hiring manager wanted Rodrigo. Deal done.

“The End” #1: 25% of $100K base salary = $25K fee. Hours taken: Approx 30 total.

Morals of the Story #1:

1) Leverage the Internet to find both candidates and clients.

2) When sourcing names (hiring managers or candidates) be persistent until your goal is achieved. The harder it is for you, the harder it is for your competition. Others will drop out.

3) Prior experience is not required to market in other niches and industries.

Deal #2 — Old Clients, New Deals

One of my firm’s strategies for today’s market, as I’m sure is for many, is to reconnect with past clients. As it happens, the following story was with my first client. Thinking back I remember all the details of my first placement in vivid detail. The candidate’s name, the position, the offered salary, the fee, the challenge of doing the deal. Shelly was placed as a Senior Financial Analyst. The fee was $12K (20% of $60K). Do you remember your first placement?

Storyline #2:

One of my firm’s researchers spotted an open senior level position on our old client’s website for Managing Senior Financial Analyst/Actuary. The client was in the insurance industry, related to our specialization, but we had never placed actuaries before. I knew they could be as tough to find and place as auditors. In this market, we went for it.

Plot #2:

I called into my client and asked for my original HR contact. The cardinal sin on the first call, I know calling HR and, on top of it, a long shot that she’d still be with company. But I figured I’d try this approach first with the person I had done many placements with years ago. Believe it or not she was still with the company, though in a different HR role. We chatted and caught up. I told her the reason for my call: Our firm now worked on senior level positions and we saw an opening for Managing Senior Financial/Actuary on the company’s website. Not a problem, she’d be happy to provide an introduction to the current HR Recruiting Manager.

So, I figure I’m in, right? Wrong.

The new HR Recruiting Manager gives me the third degree. She asks about my experience within the insurance industry and placing actuaries. Specifically, none I told her, but I told her about the past placements completed, our current clients and searches and my history with the company. And about who else I knew at the company that softened her up. I asked about details of the position. She wanted to meet me first. Now, normally I wouldn’t budge without a firmer commitment, but I sensed an opportunity to reestablish myself with a very good, past client. So, we made the appointment and in I go.I get to the firm, sit down at her “interview desk” and she promptly pulls out my original marketing letter from over 12 years ago. Faded, old stationary. I couldn’t believe it. She then tells me about the history of the actuarial search. Open for six months, met seven candidates, one offer turned down. All red flags.

“What was the primary challenge?” I asked. The hiring executive wanted specific credentials, passing X, Y, Z actuarial exams, not too strong, not too light with great track record from a top company all offering a maximum of $120K base, minimal bonus with limited benefits. And, guess what? She said the fee was 20% of the base.So, in my most politically correct style (not easy for me), I stood up, thanked her for the opportunity. I enjoyed meeting her. She said, “Wait a minute.” What would it take for my firm to work the search? I explained our firm’s search process. It would take a retainer in addition to a fee of 30% of the total compensation. She said to wait in her office while she went to bring in the HR SVP.

In came the head honcho who explained that she couldn’t offer a retainer but would increase the fee to 25% of base, contrary to the firm’s long standing policy (which was true, I knew). Now, I could have said, “Thanks, but no thanks.”

Though, there were other issues at stake, like reestablishing myself with a past, lucrative client at a time when we were looking for more search assignments. I said that if my firm had an exclusive, we’d do the search. Before I left that day, I received a detailed search assignment and two more job orders. I also received the names of companies to target and candidates to stay away from. (Driving back to the office, I thought better not to receive a retainer on this one. We had the option to drop what seemed to be a very tough and potentially time-burning assignment.) Now we had to execute. We’d blanket the industry in sourcing and recruiting candidates. Start with the NY-NJ metro market first, then regional, then national. I put my best researcher/recruiter on it.

Thirty-five names and eight business days later, she sourced Tom’s name from an in-state insurance firm. He seemed to have the right credentials and experience a small miracle onto itself. I spoke with Tom first and handled this one with kid gloves.I pursued this candidate as if he were a potential client. An initial brief phone conversation, then a follow up phone appointment. My card in the mail. A week later we spoke in the evening. It was very hands-on. Confidential. Consultative. Getting to know him, his personal background, his career ambitions, his hot buttons. Recording and registering all as we went along. Would you believe, he happened to live just twenty-five minutes from my client? I didn’t mention my client or the opportunity until our third conversation, two weeks after initial contact. (In the meantime, we hadn’t sourced any other candidates that came close to Tom.)

Getting to know Tom up-front without throwing an opportunity at him gave me valuable insight into what might motivate him to make a move. By the time I presented the opportunity to him, I knew what made him tick and could tailor it for him. (Being a family man, lifestyle was a big issue for him.) He knew my client and thought well of them. I consulted him about his career track, what this move would mean for him, his family and his career. He didn’t have a resume. So we put one together — he and I — and I customized it for the position. I paid careful attention to coaching him every step of the way — from first interview to closing. I made sure Tom was always well prepared throughout the process.

Climax #2:

In Tom went. He performed marvelously on the first interview. The next day my client checked him out. Stellar references. They wanted to jump at him — literally make him an offer by the end of the week. I coached my client, pulling them back, advising that if we ran after him, he’d pull back. He wasn’t yet mentally ready. “Let’s let him feel as if he’s competing for the position and come to the decision that he wants it,” I said. Two weeks later we arranged a second interview lunch with the hiring executive.

And then, we waited another week. “Absence makes the heart grow fonder.” My closing phone call with Tom was about eight weeks from my first contact. I asked Tom, “On a scale from one to ten, how interested are you?” “9,” he said.

“So,” I said, “If the client asks, that’s what I’ll convey.”

“Better make it a “9.5,” he said.

I said, “Tom, I know you’re earning $105K base salary now. As discussed, this position will probably go to $115K max. If I go to bat for you, I may be able to get you $120K. I think there’s a 50/50 chance I can do it. If I can, do I have your commitment you’ll accept the offer?”

The sweetest word came from his mouth, “Yes.” Before we hung up, I covered every single counter-offer issue I knew. Deal done.

“The End” #2:

25% of $120K base salary = $30K fee. Hours taken: Approx 50 total (client visit, staff research and recruiting.)

Morals of the Story #2:

1) Rekindling old relationships leads to new money.

2) Go where others dare not. Take on search assignments that may appear out of your “comfort zone” at first glance.

3) After describing your search process, negotiate for a retainer first, exclusivity second, then higher fees as a “last option.” Even in slower markets — walk away to gain posture.

Deal #3 — Split Deals by Leveraging Networks

Part of an overall strategy for many today is to join recruiter networks. The Internet’s information-sharing technologies and borderless appeal have enabled trading partners to leverage their relationships far and wide. Top of mind for many is doing split deals. As mentioned prior, part of my thinking was to go national and work at higher levels. No better way than to tap into a national, specialty network.

Storyline #3:

So my firm joined a national network in one of our specializations, financial services and banking. There I met seasoned search consultants with established relationships, track records and the know-how to execute. Previously, we had focused more on filling lending positions in banking, but were looking to move into the investment industry. With the stock markets tanking, my thinking was confirmed by what was heard on the street individuals were looking for financial advisors, not stockbrokers, to manage their money. So, we went where the smart, established money was. Private banking and trust catered to high net worth individuals.

Plot #3:

I set my firm’s sights on developing new clients where the wealth was — far from the New York metro area where anxiety from 9/11 was still running high. The sun states of Florida and California were choice markets for wealthy baby boomers.

Using the national network as our launching pad, we started recruiting for another member’s retained assignment for Private Banking Director in the San Francisco Bay Area. We recruited three top candidates from area competitor banks who had interviews arranged through my network colleague only to find in the end that the client pulled the plug on the search. Lesson learned but all was not lost. We established valuable relationships that began to germinate.

Two of the hiring managers we networked with, who worked for leading trust firms, mentioned if we ever “came across” a top Business Development Officer in the Bay Area with X, Y, Z background from A or B firms, please be in touch. So, I tapped into the national network.A network affiliate from California who specialized in investment/money management/trust began referring excellent candidates. (Thanks, Phil!) At about the sixth or seventh referral we hit paydirt and I knew it. The candidate, Chris, came from a well-known direct competitor and was at the right level, the right price — and after interviewing him — the right motivation. Chris was interested in just two firms in the Bay Area, both of the firms who wanted to meet Senior Business Development Officers.

Before referring Chris, the fee needed to be negotiated. If you’ve ever placed salespeople, then you know negotiating fees for business development types is always tricky. In my opinion, the fee should never be based on salary alone. For example, a $60K base salesperson with target incentives to double the base is worth a fee off of $120K. Why? Because we are bringing a $120K candidate to our client, not a $60K one. In negotiating fees for salespeople, try one (or a combination) of the following options:

  • An agreed upon, fixed fee up-front based on total comp.
  • The candidate’s prior year W-2.
  • Fixed fee plus “X” percent of residual earnings over “Y” time period.
  • The candidate’s total 1st year guaranteed compensation, including all bonuses and incentives.

Knowing how this industry compensates (and guarantees big bonuses to first year employees) in went my fee contract at 25% of the 1st year total compensation. And in went Chris to my two potential clients, his firm’s two main competitors. The beauty here was he would go to either, though preferred “U” over “N.”

Climax #3:

As expected, Chris performed extremely well with both firms as I coached him through the process for each. First he was offered a $180K total package with “N,” his second choice. When “U” found out about “N’s” offer, he was offered $190K total package with his first choice “U.” Deal done.

“The End” #3:

25% of $190K package ($100K base + $90K 1st year guaranteed bonuses) = $47,500 fee. Hours taken: Approx 40 total. (Fee was split with percentage to the network. Two new clients established.)

Morals of the Story #3:

1) Recruiter networks yield split deals. Be as selective in choosing trading partners as you are with potential clients.

2) Be creative with your fee options. Increase your fee by basing on total compensation, rather than simply base salary.

3) Exclusivity yields placements. If clients don’t offer exclusivity, get exclusives with top tier candidates.

Deal #4 — Finding Client & Candidate Exclusivity

Today, many continue to seek out new clients through volume cold calling. At the same time, many opt to find candidates on the Internet by casting out a big net — either through job postings or accessing public candidate databases. Both methods still work, though are less efficient today (due to lack of candidate and/or client “control”) than a customized, consultative approach.In this story, the reverse was true: We found our new client through a company’s online job posting.

And our candidate was recruited “the old-fashioned way”…through researching, sourcing and networking calls. Many know that this is the preferred process to take today. The key is to screen rigorously up-front before taking significant action. This is a first step toward gaining exclusivity.

  • To find new clients leads on the Internet, we need to be able to read into job postings that are flawed.
  • To recruit highly placeable candidates, we need to find and motivate those who are qualified and not actively looking, i.e., “Real Recruiting.”

Storyline #4:

Part of our strategy was to leverage our financial services contacts to include the more “recession proof” insurance industry. Since we specialized in finance at higher levels in the NY area, we began with a straightforward Google search to identify new client leads, plugging in parameters: [insurance] [finance vice president] [jobs] [new york]. We were enlightened. Out came a list of job postings and links to corporate websites. In there were a few golden nuggets.

Plot #4:

One of the links in our simple Google search led to an open position for Senior Director of Finance reporting to the Corporate Controller of a large, name insurance company. Since the position was on the company’s website, it read like a job description rather than a job posting complete with detailed responsibilities, reporting structure, grade level and compensation range.

The beautiful thing here (as is the case for many looking to cross over to related niche areas) was we didn’t need to be insurance industry experts. The language in the job description would help us become “temporary experts” in approaching and marketing to the new client.

In addition, the flaw (i.e., one of the inefficiencies to capitalize on) was that the position was located in New York but reported to the senior manager in Chicago. This would turn out to be key in positioning ourselves as being in the right geography and having the right contacts to recruit the right candidate (in the eyes of the powers-that-be in Chicago.)

Our precision marketing yielded an “A” search assignment. Our process was the following:

  1. Print out the open, web-based job description. Highlight buzzwords and technical phrases.
  2. Visit the company’s website to gain understanding of lines of business, products and markets served.
  3. Source the name of the hiring manager. Write name and direct phone # on job description print out.
  4. Make the customized, consultative marketing call using technical language.

We learned no other search firm had called the Corporate Controller about this NY based position (which had been posted for about a week). He had received “lots” of resumes from his HR liaison but none from the firms he was interested in. I then asked the standard line: “Where would he like to meet candidates from?” And he told me the top five competitor firm’s where we should look. The fee was a corporate standard 25% of base salary.

For this $110K+ position with our first-out-of-the-gate advantage, this was acceptable.I put my best recruiter on it. She sourced candidate names from the five competitor companies cold having no prior contacts. The key here was her ability to use the language of the job description to pinpoint responsibilities at the right level.The choice candidate, John, was found through a networking call from a referral from a senior manager who recently started a new position and who had managed him prior. In the networking call, I asked my recruiter what she had done to find John. She simply read back the job description to cold contacts and followed up with a personalized email, which included the job details.

Targeted advertising. In the recruit call, she had referral power (the assumption by the candidate that we knew the senior manager) plus inside knowledge that our candidate may move for the right opportunity prior to contacting him.John was the ideal candidate with all the trimmings. A diversity candidate with an outstanding track record, MBA and CPA, under-priced at $95K base with excellent presentation and communication skills. I worked with him to customize his resume for this opportunity, specifically in the summary at top. I met with John twice once before the interview process and once before an offer was extended.

Throughout the interview process, John was on clear sailing to be the choice candidate. All along I’m monitoring and coaching both client and candidate. In John’s full day third interview in Chicago, both sides showed buying signals. After what was to be the final interview, there was an unexpected delay in receiving feedback from the client. Big red flag. It turned out that a reorg had been sent down by the CEO. All was on hold indefinitely.So, what did I do for the first time ever? I sent the Corporate Controller an invoice for my firm’s time. 28 hours @ $150 per hour for $4,200. The balance due would be deducted from the full fee when the candidate was placed. On the invoice the “Status” was “Position on hold” and we clearly defined the time frame and services we performed from “Sourcing, Recruiting, Interviewing to Compensation Discussions.”

Climax #4:

The invoice we sent wasn’t paid, but it did trigger the Corporate Controller to discuss with Human Resources (who was now in the loop) to create another direction. About two weeks later I received a call from HR about how they didn’t anticipate the turn of events. However, a new position in NY was opening up and my candidate (who was now sold on the company) just happened to have the ideal background. After understanding the new role, the new players and what career path this would take him, John agreed this was a better opportunity all around for his career goals. The process from here was very fast. It took one interview and three weeks to receive an offer. Deal done.

“The End” #4: 25% of $115K base salary = $28,750 fee. Hours taken: Approx 45 total (including staff research, recruiting, my lunch meetings.)

Morals of the Story #4:

1) Precision market new clients from Internet based leads. Look for “flaws” (i.e. inefficiencies) where you can solve hiring managers’ problems.

2) “Real Recruiting” leads to candidate exclusivity.

3) “Alternative” billing options may yield unexpected dollars (and maybe some respect for your performance and time.)

Deal #5 — Hang Tough: Persistence Pays

Storyboard #5:

This final story is a great example of the challenge and reward of making it through times like today. Seasoned search consultants know that the Holy Grail of our business — the goal most strive for — is to build relationships with both clients and candidates that stand the test of time. These are the ones in which people confide in us and call us first to ask our advice. Built on mutual trust and respect, these relationships transcend company ties. One of the signs you know you have the “right relationship” is when a candidate you placed calls with a search assignment and becomes your client.As the global bank, J.P. Morgan Chase, uses as its tagline: “The right relationship is everything.”

Storyline #5:

This is the classic “marketing an MPC” story with a long twist. In mid 2001, my firm began working on a VP Relationship Manager assignment for a private bank in Philadelphia. In the process, we got to know the market very well and recruited a few choice candidates for our client. One of the candidates, Ed, was different from other Private Bankers in three ways:

  1. He was relatively junior (8 yrs exp) for his position compared to others. As a result, he was about $15K underpaid and he knew it.
  2. He looked to me as an expert in my field — for career advice and counsel.
  3. From his profession, he understood the value of confidentiality in a job search.

Plot #5:

Ed committed in writing — in an email he sent me two weeks after our initial conversation — that he would work with our firm as his “sole agent.” We, in turn, agreed to introduce him to his choice companies (with the caveat that he would stay within private banking in Philadelphia.) The reason Ed was seeking a career move was more than the money (though, more always helps especially with a growing family).

His firm was restructuring, so job security was a big issue for him. With a new boss, his current employer was flattening. He would have limited growth potential and he knew it.What was terrific about working with Ed was our open communication. No second-guessing or mind games. From the start, we clearly defined the companies and positions he was interested in. He was selective yet flexible. His top choices were two big, local banks (he worked for one). We also discussed a set of second tier choices he was open to.

We put together a marketing plan and spoke about expectations and timing. Given the soft job market, this was going take time, perhaps six months or more. Patience, perseverance and us working closely together would win in the end. Within four weeks, we had arranged interviews at Ed’s top two choice banks. It was fairly easy to market him to senior management. He had an excellent track record and a portable book of clients from a major competitor in town.One of Ed’s choice interviews was scheduled for September 14, 2001.

I remember speaking with him on September 12. It was the first and only time I can remember when I cancelled an interview without speaking with the hiring manager first (who was in Boston and couldn’t get back until the following Monday.)

We all know how 9/11 changed everything and slowed down decision-making. People and corporate value systems were realigned. Financial services firms in the Northeast and around the country put the brakes on hiring. One of the few positives I remember was how that time brought people together which, in the end, assisted in developing closer, more meaningful relationships.Ed’s patience and perseverance were to be taken to the limit. His first interview was rescheduled for two weeks later, even though the hiring manager knew everything was, as he called it, “fluid.”

Though, the act of him rescheduling the meeting told me that this was a client in the making. Steve, the Group SVP and hiring manager, had respect for people. He was very responsive and his word was his bond. I like that in a client. We could work with him, I thought, no matter how long it would take.The short version from here follows.

Over the course of the next 12 months, I arranged four meetings (including two lunches) for Ed and Steve. I even had the opportunity to meet Ed while training at an event in Philadelphia. I tried to meet Steve as well, but his schedule didn’t work on that date.

Throughout, I continually coached both — communicating expectations and timing. Ed came back from his last lunch meeting and couldn’t believe Steve didn’t make him an offer on the spot. A solid relationship would eventually turn to a placement when the timing was right, I thought. 14 months after the initial referral, Steve called me. A position in his group opened up due to an internal transfer. He wanted Ed.

Climax #5:

Done deal, right? Not so fast. HR came into the picture and had to “follow protocol” by posting the position internally and seeing other candidates. Although HR went through the motions, Ed and Steve’s relationship was too strong by this time. Steve wanted Ed and Ed wanted Steve. To make the numbers work, Steve guaranteed Ed’s bonus for six months.I didn’t discuss fee formally until the end of the process. (Though, I did mention our fee at the end of an email to Steve, when referring Ed originally, to insure I had it in writing.) Sacrilege in our business, I know.

However, my new client was a major bank and I knew a standard fee of 25% would probably apply. It’s uncommon that I do this and prefer to have a fee contract in place up-front. Though, in marketing Ed to hiring managers, if they didn’t ask, I didn’t tell. If I did bring up the fee subject up-front, this probably would have triggered a referral to HR in the beginning of the process. I didn’t want that.In this case, the fee was discussed at the end of the process — which gave us the upper hand in negotiating. HR asked us what our fee was and then timidly mentioned the company’s “standard fee” was 25%. I didn’t want to make waves, since I had put in months of time developing a new client. I ended up agreeing to 25% of the total 1st year compensation base plus guaranteed bonuses. We earned it on this one. 16 months later from date of original referral the deal was done. I congratulated Ed on breaking our firm’s record in terms of time taken. Deal done.

“The End” #5:

25% of $95K package ($85K base salary + 10K guaranteed bonuses) = $23,750 fee. Hours taken: Lost count (probably about 70 to 80 total).

Morals of the Story #5:

1) If all signs align up-front, patience and perseverance can make the difference in “the right timing” to pull a deal together.

2) Ongoing, proactive, open communication builds trust and respect with both client and candidate. Once established, they have no need to “go anywhere else.”

3) If HR must be in the process, consider bringing in toward the middle to end (if possible) — when you have greater fee negotiation leverage in representing the choice candidate.

Summary of the Stories

I hope my “deal stories” have an impact on how you think about your business going forward. Put to use some of the stories’ strategies, techniques and “morals” and see what happens. In summary, what do these five deals have in common?

  1. The foundation of our business is built on relationships with people. Earn trust through open communication. Earn confidence through pro-action. Strive for exclusivity.
  2. Be creative. Be bold. Ask the tough questions. Test people. Take calculated risks in the process. You’ll be surprised what works to your best advantage. If your gut says “do it,” then do it.
  3. Expect the unexpected. No two deals are the same. Be patient and persevere in times of adversity. If what we do was so easy, it wouldn’t be as rewarding — personally and financially.
  4. Describe your process and share your success stories. Work with hiring managers who are decision-makers, who respect your counsel and who understand how you add value.
  5. Top tier candidates, who are motivated and well-coached, win the top jobs in any market.

In closing, I challenge you to take ten minutes now. Think back about your best deal story since 2001. Put pen to paper (or fingers to keyboard) and write it out. No doubt, there’s wisdom in there.

I’d like to hear your best story. Email it to me at mramer@ramergroup.com and I will respond with feedback. We are very fortunate to be in the right place at the right time. Tell your success stories to clients and candidates. And watch the response. The light at the end of the tunnel is near. Get ready for the best times ever!

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